Computation of Net wealth....

Calulation of net wealth:-

House property used for business (not an asset U/S-2(ea))             = nil

Motor Car                                                                                                       = 840000

Motor Van      ( Heavy goods vehicle isnot an asset U/S-2(ea))          = nil

Jeep                                                                                                                = 354000

Cash in hand (in excess of 50000/-)                                                        = 300000

Jewellery (assumed as not held as a stock in trade)                           = 1560000

Urban House  (taxable only when power to revoke arises u/s 4(5))  = 1410000    

Total                                                                                                                =4464000

less : Exemption (u/s-5 (vi))(assuming as house is not exceeding 

             500 sq.m)                                                                                        = (1410000)

Net Wealth                                                                                                    = 3054000

Originally posted by : S. VIJAY NARENDRA
	Calulation of net wealth:- House property used for business (not an asset U/S-2(ea))             = nil Motor Car                                                                                                       = 840000 Motor Van      ( Heavy goods vehicle isnot an asset U/S-2(ea))          = nil Jeep                                                                                                                = 354000 Cash in hand (in excess of 50000/-)                                                        = 300000 Jewellery (assumed as not held as a stock in trade)                           = 1560000 Urban House  (taxable only when power to revoke arises u/s 4(5))  = 1410000     Total                                                                                                                =4464000 less : Exemption (u/s-5 (vi))(assuming as house is not exceeding               500 sq.m)                                                                                        = (1410000) Net Wealth                                                                                                    = 3054000

AGREED.....

As the niece died on 14th March 2011 i.e before 31st march 2011, the transfer became revocable and hence is to be included in the Net Wealth computation subject to exemption u/s 5(vi), as correctly demonstrated by Mr.VIJAY.

i) Not an asset as it is used for business purpose                                  NIL           

ii) All 3 Vehicles are taxable (as Motor car includes Jeep and Van)    1644000 

iii) cash in hand = 3,00,000 is taxable                                                   300000

iv) jewellery =    15,60,000 is taxable                                                  1560000

v)  Urban Land is taxable

    (as power to revoke arises before valuation date)                         1410000

Exemption of value of land can be claimed u/s 5(vi)                         -1410000

(if it is upto 500 sq metres)

Net Wealth                                                                                        3504000

S. Vijay Narendraji should have included Motor Van as taxable asset, 

as the definition of Motor Car  u/s 2(ea)  includes motor car defined in Motor Vehicles Act, 1988, which includes Jeep and Motor Van.

@ Ravikant

t

As I m not concerned abt Motor vehicle Act at all..

since I mentioned a note that for wealth tax purpose heavy goods vehicle will not b included in the net wealth. Hence if Motor van is not a part of heavy goods vehicle .Then it will b taxable .

so here ur objection is correct.

thanks  Mr.Ravikant  to giving this information.

But i wants 2 say one more thing 2 all of u that in exams in these type of circumstances ASSUMPTION plays a very important role 2 avoid the examiner from deducting ur marks.....So plz mention a note in exam.

any other views r welcomed.

Originally posted by : S. VIJAY NARENDRA
	@ Ravikant t As I m not concerned abt Motor vehicle Act at all.. since I mentioned a note that for wealth tax purpose heavy goods vehicle will not b included in the net wealth. Hence if Motor van is not a part of heavy goods vehicle .Then it will b taxable . so here ur objection is correct. thanks  Mr.Ravikant  to giving this information. But i wants 2 say one more thing 2 all of u that in exams in these type of circumstances ASSUMPTION plays a very important role 2 avoid the examiner from deducting ur marks.....So plz mention a note in exam. any other views r welcomed.

AGREED.

ravikant sir's answer is correct, it does not require any assumption, only notes of reference to act is required,

I would also request all to please avoid making wrong assumptions in exams as it may lead to bad impression, as the examiner is concerned.